PET bottle recycling company CarbonLite Holdings LLC announced it has filed for Chapter 11 bankruptcy. Production at all CarbonLite facilities will continue and no layoffs are anticipated, said the company’s announcement.
“We’ve chosen to take this necessary step during a time of unprecedented challenge and expect to emerge from reorganization even more strongly positioned for the future,” said CarbonLite Recycling CEO Leon Farahnik. “Our customers, all of whom have steadily increased their commitments to the use of recycled plastic in their products, have expressed confidence in this process and our carefully considered decision,” he added.
CarbonLite cited pressures directly related to the coronavirus pandemic for its financial issues, pointing to slowdowns in production because of employee illness and the depressed price of new plastic. COVID-19 also caused a nine-month delay in the completion and opening of its Berks County, PA, location. The company said it incurred heavy capital expenditures from the opening of the new plant as well as an expansion of its Texas property.